Doha: Oil prices have risen sharply at settlement, amid concerns over potential supply disruptions linked to the ongoing conflict in the Middle East. Futures for Brent crude climbed by $7.87, or 7.78%, to settle at $109.03 a barrel.
According to Qatar News Agency, US West Texas Intermediate crude rose by $11.42, or 11.41%, to $111.54 a barrel, marking its largest daily gain since 2020. The sharp increase in prices reflects the market's response to the instability in the region, which is a critical hub for global oil production and distribution.
The surge in oil prices is indicative of traders' fears over potential disruptions in supply routes and production capabilities due to the conflict. This development has added pressure on economies already grappling with inflation and energy shortages, as the cost of crude oil directly impacts a wide range of industries and consumer prices.
The current situation underscores the importance of geopolitical stability in the Middle East for the global oil market. Any prolonged disruptions in supply could lead to further volatility in oil prices, affecting both producing and consuming nations. This has prompted calls for diplomatic efforts to address the underlying conflicts and ensure a steady flow of oil to meet global demand.